Negotiate entitlements in a redundancy
Made redundant? Check the offer before you sign anything.
A redundancy offer almost always understates what you are actually owed. Notice, redundancy pay, accrued annual leave, long service leave, unpaid super, equity that is still on foot, and bonuses or commissions earned but not paid all need to be added up before the deed is signed. We audit the offer against your contract and the Fair Work Act, negotiate the shortfall, and make sure the redundancy is genuine in the first place so you have not been quietly dismissed under another name.
What does negotiating redundancy entitlements involve?
Redundancy under the Fair Work Act 2009 (Cth) (the Act) is the dismissal of an employee because the employer no longer requires the role to be performed by anyone. A genuine redundancy attracts statutory redundancy pay on a sliding scale based on length of service, plus notice of termination, accrued annual and long service leave, and any contractual entitlements. Where the redundancy is not genuine, for example the role is renamed and given to someone else, the dismissal can be challenged as an unfair dismissal. Most redundancy offers leave money on the table, particularly in equity arrangements, commissions, and unpaid superannuation.
What makes a redundancy "genuine"?
A redundancy is genuine under the Act if the employer no longer requires the job to be performed by anyone, the employer has consulted the employee in line with any applicable modern award or enterprise agreement, and redeployment to another suitable role has been considered. If any of those elements is missing, the redundancy may not be genuine and the dismissal can be challenged as an unfair dismissal.
How much redundancy pay am I entitled to?
Statutory redundancy pay under the Act runs on a sliding scale based on your length of continuous service, from four weeks at one year of service up to sixteen weeks at nine years or more. Your contract or modern award may provide for more than this, in which case the higher amount applies. Employees of small business employers (fewer than 15 employees) are generally not entitled to statutory redundancy pay.
Do I get paid out my leave and notice on top of redundancy pay?
Yes. Notice of termination, accrued annual leave, long service leave (where you qualify), and any earned but unpaid commissions or bonuses are paid in addition to redundancy pay. Unpaid superannuation is also recoverable.
Should I sign the deed of release that comes with the redundancy offer?
Not before someone has audited the amount and reviewed the terms. A deed of release closes off every other claim you may have against the employer, including unfair dismissal and underpayment claims you might not have realised you had. We review and negotiate the deed before you sign.
Genuine redundancy confirmed.
We check that the consultation happened and the role is actually gone, not just renamed.
Entitlements quantified.
Redundancy pay, notice, leave, super, equity, and bonuses all checked against the contract and the Act.
Deed reviewed before you sign.
Releases narrowed, restraints negotiated, taxation calibrated.
Want us to look at the offer before you sign?
Most redundancy offers can be improved with a single round of negotiation, especially where equity, bonuses or unpaid super are in play. The first call gives you a clear view of what is missing.
Made redundant. Asked to sign by Friday.
You were told the role is gone, handed a deed of release and a settlement number, and given a few days to sign it. You do not know whether the redundancy is actually genuine, whether the maths is right, or what claims you are giving up when you sign the deed.
- We will check whether the redundancy is genuine under the Act or whether it should be challenged.
- We will audit the offer against your contract, the Act, any modern award, and any equity, bonus or commission arrangements.
- We will quantify unpaid superannuation, leave entitlements and any earned but unpaid amounts.
- We will review and negotiate the deed of release before you sign.
- We will close the matter out with a properly drafted exit and a settlement that reflects the full entitlement.
The role is being made redundant and the offer is in front of you.
The conversation with HR was short, the numbers were generic, and the deed of release is expected back by the end of the week. You suspect the redundancy pay is below what your contract or award provides, the equity question has not been addressed, and the deed has restraint clauses that did not exist in your original contract. You do not have time to fight it, and you do not want to walk away with less than you are entitled to.
What's included in your redundancy negotiation service
- Genuine redundancy assessment under the Act.
- Audit of the offer against contract, award or enterprise agreement, and statute.
- Calculation of redundancy pay, notice, leave, superannuation, equity, and unpaid commissions.
- Deed of release review and negotiation.
- Negotiation of restraint, confidentiality and non-disparagement terms.
- Final advice on signing and on tax treatment of the payments.
What gets left on the table when offers get signed without advice.
The most common mistake employees make in a redundancy is treating the first offer as the full entitlement. The employer puts a round number on the table, frames it as final, and pushes for a signature within a week. Unpaid super does not appear in the calculation. Equity that should have vested on a good-leaver basis is silently treated as a bad-leaver forfeiture. The deed of release closes off every other claim, including underpayment claims the employee never investigated. Months later the employee works out what they actually walked away from, and there is no claim left to bring.
Here is how we get the redundancy paid properly.
We review the offer against your contract, the Act, the applicable modern award, and any equity or bonus arrangements that should be in scope. Where the redundancy is not genuine we advise on whether to challenge it instead, and where the maths is short we go back to the employer with the calculation and the legal basis. The deed of release is rewritten so the restraints are reasonable, the non-disparagement runs both ways, and the release does not close off underpayment claims that have not been properly addressed. You sign a deed that pays out the full entitlement and protects your ability to work in your industry afterwards.
Three steps to a redundancy that pays out properly.
Audit, negotiate, sign.
1
Entitlements mapped.
We check whether the redundancy is genuine and audit the offer against your full entitlements.
2
Numbers renegotiated.
We go back to the employer with the corrected numbers and the legal basis, and negotiate the gap.
3
Exit signed off.
We review and revise the deed of release so the terms are fair, then walk you through the signing.
Employment lawyers who negotiate redundancy entitlements and exit deeds for employees.
Being made redundant is unsettling at the best of times, and it gets worse when the offer arrives with a deadline attached and the language of a final number. We have negotiated redundancy exits across professional services, healthcare, construction and corporate roles up to executive level, and the difference between the first offer and the signed deed is usually material. Our team audits the entitlement properly, negotiates the gap, and rewrites the deed so the restraints, releases and non-disparagement terms are workable. You sign a deed that reflects the full entitlement and leaves your career intact.
We understand you want to know the cost, before we get started...
We will map out our process, from beginning to end, so you know what the journey will look like before you get started.
We will provide you with a clear and detailed Work Proposal covering each step along the way.
Our fair fees are all-inclusive. No hidden costs for telephone calls, emails, photocopying, couriers, or coffee.
Get the redundancy reviewed before you sign.
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